Statement by the Honourable Kerry-Lynne D. Findlay on the release of the Auditor General's Report

Today, I am pleased that the Auditor General's audit has confirmed that the Canada Revenue Agency (CRA) appropriately managed the information it received in 2007 on potentially undeclared income in offshore accounts in Liechtenstein.

The audit also recognizes that the CRA, through its management approach, gained valuable intelligence about the workings of these types of complicated offshore banking schemes to enhance its detection and audit procedures for cases of international tax evasion and aggressive tax avoidance.

The Liechtenstein list was the first such list received by the CRA, and limited information was available on the use of offshore accounts. I am pleased to report that, through dedicated efforts, the CRA has completed all 46 audits based on information from the list, and has to date assessed over $24 million in taxes owed.

The CRA accepts all recommendations made by the Auditor General to further strengthen its capacity to address non-compliance by taxpayers who have offshore holdings. Action plans to address the recommendations are currently underway.

Budget 2013 also announced new tools and legislative measures that will complement this effort, including:

• the new Stop International Tax Evasion Program;
• the mandatory reporting of international electronic funds transfers over $10,000 to the CRA;
• enhanced reporting requirements for Canadian taxpayers with foreign income or assets -  Foreign Income Verification Statement (Form T1135); 
• streamlining the judicial process in which the CRA seeks authorization to obtain information on unnamed persons from third parties such as banks; and
• extending the normal reassessment period by three years for taxpayers who have failed to report income from a specified foreign property on their annual income tax return and failed to properly file the Foreign Income Verification Statement (Form T1135).

Canada plays a strong role in international efforts to detect and deter abusive offshore tax schemes, and will continue to collaborate with international partners to share intelligence.

Canada Revenue Agency

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